twilighter
New member
Ashley was informed at the age of 20 that she was about to inherit a large sum of money . Her aunt invested $10 every day for 15 years into a savings account when Ashley was Born. This account earned 9%/a compounded daily interest. After the 15 years , the large sum of money was then deposited into a Guaranteed Investment Certificate at 8%/a compounded semi-annually . The aunt had only one condition for PART ONE ! Ashley to collect the money : Ashley was to invest the money into an annuity where she would pay herself one a month until Ashely turned 65 years old. Ashley arranged an annuity paying 11%/a compounded monthly . How much does Ashley receive each month?
PART TWO ! Ashley , at age 30 wanted to buy a house she needed $20000 down payment for the bank to give her a mortgage. She decided to take the downpayment from the annuity . The bank agreed however, her new interest rate was dropped to 7.3%/a compounded monthly for the remainder of the payments . What will her new monthly payment be?
PART TWO ! Ashley , at age 30 wanted to buy a house she needed $20000 down payment for the bank to give her a mortgage. She decided to take the downpayment from the annuity . The bank agreed however, her new interest rate was dropped to 7.3%/a compounded monthly for the remainder of the payments . What will her new monthly payment be?